Indian equities slipped on Monday, weighed down by losses in IT stocks and weak cues from Asian markets after the United States renewed tariff threats against China, while investors awaited domestic inflation data for September.
The Nifty 50 declined 0.23 per cent to 25,227.35, and the BSE Sensex fell 0.21 per cent to 82,327.05. Among broader indices, small-caps dropped 0.2 per cent, while mid-caps inched up 0.1 per cent.
Asian markets fell 1.2 per cent after US President Donald Trump threatened sharp tariff hikes on Chinese imports in response to Beijing’s curbs on critical mineral exports.
However, reports that India and the US remain committed to a fall 2025 deadline for the first phase of a bilateral trade deal helped limit losses.
Renewed trade tensions have reignited concerns over higher inflation and interest rates in the United States. Elevated US bond yields often pressure emerging markets like India, prompting capital outflows towards the dollar and US Treasuries.
“Profit booking in consumption and discretionary sectors after recent rallies indicated a tactical shift in investor positioning. Mixed Q2 earnings further weighed on sentiment, with IT stocks underperforming, while financials attracted selective buying following regulatory easing. Overall sentiment remained guarded, keeping markets under a slight negative bias,” said Vinod Nair, Head of Research, Geojit Investments.
The IT sector, which derives a large portion of its revenue from the US, declined 0.8 per cent ahead of HCLTech’s quarterly earnings, due after market hours. The stock, however, ended little changed.
Investors are now awaiting India’s September retail inflation data, with economists forecasting a moderation to 1.7 per cent, below the RBI’s 2 per cent–6 per cent target band, aided by easing food prices.
Separately, Tata Capital made a strong market debut, listing 1.23 per cent above its issue price and closing 1.4 per cent higher in its first trading session. |
